Built on Centrifuge Chain

Centrifuge is built on Centrifuge Chain, a layer 1 blockchain custom built for financing real-world assets(RWAs). Real-world assets are tokenized as NFTs (Non-Fungible Tokens) to create an on-chain representation, and are linked to detailed off-chain data. The assets are pooled together and securitized by the issuer. Liquidity Pools can be used to invest from other blockchains. Integrations with DeFi protocols such as Maker, Aave, and more are already set up across the ecosystem.

The advantages of a blockchain custom-built for RWA include:

  1. Lower transaction costs and increased scalability, as the functionality is natively built into the runtime logic of the blockchain, which enables optimization for dedicated transactions and use cases.
  2. The flexibility to develop features that are not possible within a general-purpose smart-contract blockchain such as Ethereum.
  3. Dedicated blockspace for real-world asset transactions: if there's a hugely popular NFT drop tomorrow on Ethereum, this won't block borrowers from repaying or investors from redeeming.
  4. The ability to define transaction ordering, e.g. ensuring that redemption orders can always be submitted, even in highly contested blocks.

Governed by CFG holders

The native token of Centrifuge Chain, CFG, is used as an on-chain governance mechanism that empowers CFG holders to manage the development of the Centrifuge Protocol.

Centrifuge's formalized governance system enables onchain voting mechanisms for binding and transparent governance by CFG token holders. Beyond the use of the Centrifuge token (CFG) for governance of the blockchain, CFG is also used to pay transaction fees.